ITI MF doubled its AuM from Rs.5,000cr to overRs.10,000cr in just over a year. In a Nov 23 conversation, Rajesh talked about wanting a J-curve growth spurt on the back of performance tailwinds and processes to ensure performance consistency. That J-curve journey seems to have begun and he now says well begun is only half done – the key is to maintain performance consistency.
Early entries into telecom, capital goods and PSUs among others were key contributors to successful performance. That said, Rajesh stresses that there is no house view that is imposed - each fund manager within the team has freedom to select stocks and sectors within the set frameworks.
Rajesh has been guiding his team in recent months to make a gradual shift towards higher quality businesses as this bull market moves forward – he is in the camp that sees market rotating from value to quality.
Rajesh is excited about the power space – generation, distribution and finance. He continues to like capital goods, telecom and select consumer discretionary segments.
He is clear that we are still in a bull market and any correction that can always happen will just be within this bull market. Market is trading at 21x FY26 earnings. If we are anticipating a 15% correction and earnings continues to grow at 15%, a year from today, market will then be trading at 16x 1yr forward earnings – a possibility he doesn’t see playing out.